PACIBER 2012 Annual Meeting Innovation and Change in the Global Economy

PACIBER’s 24th Annual Meeting was held at the Sheraton Kauai Resort, Poipu, Hawai’i, July 6-9, 2012, hosted by the University of Hawai’i. The theme was “Innovation and Change in the Global Economy and International Business Education - Catalysts, Interactions, and Responses", attended by 37 faculty from 25 business schools representing South Korea, China, Taiwan, the Philippines, Thailand, Malaysia, Indonesia, Singapore, Australia, New Zealand, Germany, Colombia, Canada, and the United States.

The Annual Meeting included sessions devoted to PACIBER’s U.S. Agency for International Development (USAID) $25M grant proposal, entitled “PACIBER-USAID Consortium Center: A Transformational Approach to Create Inclusive Markets, Promote Indigenous Entrepreneurship, and Leverage Innovative Technology to Address Global Development Challenges”. Supporting this endeavor were full group discussions, breakout sessions, and a demonstration on the IBM Collaboration and Data Analytics Platform.

Research presentations were geared for submission to The Journal of Teaching in International Business, and included the topics of Virtual Teams, Students’ Perspectives Toward International Employment Opportunities, Comparative Approaches to Teaching International Business, Online Course Delivery, the Schulich International MBA, and Korean Confucianism.

Discussions on PACIBER collaborative activities included future faculty development workshops on international entrepreneurship and qualitative methods in international business, an update on the PACIBER International Business Case Book, collaborative research, and the PACIBER Diploma and school exchanges.

Members provided updates on their schools and delivered country presentations as part of the regional update session.

The next PACIBER Annual Meeting, marking its 25th year, is being graciously hosted by Chulalongkorn University in Thailand (Bangkok or Phuket), tentatively scheduled for June 27 through June 30, 2013.

Sheraton Kauai Resort July 6-9, 2012

FACULTY DEVELOPMENT WORKSHOP

A faculty development workshop on “Qualitative Methods in International Business” preceded the meeting. Catherine Welch (University of Sydney) and Dan Caprar (University of New South Wales) facilitated the workshop. The group concluded that international business literature predominantly deals with well-defined research problems based on an empirical and an analytical research agenda. PACIBER community members acknowledge the necessity of employing such agendas, yet also contend that international business often deals with dynamic cultural phenomena that numbers alone fail to explain. They found reality requires a different approach, and the workshop served as a platform for PACIBER members to discuss the merits of qualitative methodology.

OPENING RECEPTION

The 2012 PACIBER Meeting commenced with an opening reception in which PACIBER Chair, Dean Dezso Horvath (York University) and PACIBER Executive Director, Shirley Daniel (University of Hawai’i), welcomed members of the consortium. Dean Horvath announced that the organization will be celebrating its 25th anniversary in the upcoming year and expressed gratitude for the contribution that consortium members made over the years.

PACIBER PROPOSAL FOR THE USAID GRANT

The first day of the meeting focused on the research proposal that a number of PACIBER member universities developed for the US Agency for International Development (USAID) Higher Education Solutions Network Grant, which would award the recipient $25M over five years. PACIBER’s proposal “A Transformational Approach to Create Inclusive Markets, Promote Indigenous Entrepreneurship, and Leverage Innovative Technology to Address Global Development Challenges” was selected by the USAID for further assessment in May 2012. Over 450 concept notes were submit from universities and research centers. Only 15% of the concept notes were given the opportunity to submit a full application. The agency contacted the PACIBER Secretariat and requested that the Consortium submit a full application in July 2012.

PACIBER members formed discussion groups and discussed how they could contribute and further develop the research project as a consortium effort. Dharm Bhawuk, (University of Hawai’i), shared his experiences being the Faculty Director of the Microfinance Field Study Program, and introduced the partners that PACIBER will be cooperating with in the proposed USAID project. Gerardo Ungson (San Francisco State University), one of the project leaders of the USAID proposal, explained how the actual projects on the ground will proceed if the consortium is awarded the grant. Manuel Serapio (University of Colorado, Denver) explained his institution’s role in the USAID project and shared his ideas on how PACIBER business schools can serve as a vital educational tool for the training of community leaders, businessmen and students of the developing world. Mark Ballam (San Diego State University) contributed to the discussion by offering his perspective on how to

successfully employ a “bottom of the pyramid” approach via microfinance projects. Subsequently, Dean Horvath informed members on sustainable development centers that York University embodies. He mentioned that over the past ten years, Canadian universities gained significant experience in developing supervisory programs for emerging economies. York University, one of the leading institutions in this field, has been training supervisors in both developed and developing economies. Dean Horvatz suggested that combining educational expertise and research should be the focal point of the proposed research project.

Steven Sakata, IBM Senior State Executive and Territory Manager for Hawaii and Guam, introduced the IBM Collaboration and Data Analytics Platform that PACIBER members will be utilizing as a communication tool, if deemed appropriate, for future Consortium Activities. This is particularly relevant with respect to the sharing of data and further developing the proposed USAID project.

REGIONAL UPDATES

Panelists included member universities from Oceania, Southeast Asia, East Asia and the Americas. Discussants provided a detailed analysis on innovation and change in the global economy by drawing comparisons between regions and countries. Dean Horvath served as the moderator in this session. Member updates, led by Shirley Daniel, concluded the first day of the meeting.

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OCEANIA

Australia

Larry Crump, Griffith University

Forces Impacting Business Education

The high value of the Australian dollar continues to be a major area of concern for Australian business schools. Following mining and agriculture, education is the third largest sector in Australian economy. As the value of its dollar rises, institutions of higher education are negatively impacted. Australian business schools rely heavily on international students. An alarming drop (almost 20%) in the number of international student visa applications in 2010 compelled the Australian government to ease its student visa program in hopes of recruiting more international students. However, it seems that the problem runs deeper than visa procedures alone. There is an increasing global competition in the international student market. The competition was initially among British, American, and Asian business schools. Administrators at several Australian business schools believe the answer lies in offering joint M.B.A. programs and increasing the availability of international exchange programs.

Despite the declining overseas student population, Australian business schools remain strong. According to the QS Global 200 Business Schools Report 2012, in the Asia-Pacific region Australian business schools continue to climb up the rankings. 11 of the 36 business schools listed in the Asia-Pacific Region that MBA employers prefer are located in Australia. The Australian Research Council (ARC) developed a research management initiative “Excellence in Research for Australia (ERA)”. The ERA initiative collects data on the quality of research activity undertaken within a given reference period. The ERA 2010 report (p. 281) ranked The University of Melbourne, The University of New South Wales, and The University of Queensland as “characterized by evidence of outstanding performance well above world standard” in business and management education and research.

New Zealand

Christina Stringer, University of Auckland

New Zealand is a small, open economy based on free market principles. The conservative government, which was elected at the time of the global financial crisis, is focused on removing barriers to trade. The government has identified four main priorities for 2012:

1) Responsibly manage the Government’s finances, 2) Build a more competitive and productive economy, 3) Deliver better public services to New Zealanders, and 4) Rebuild Christchurch, New Zealand’s second-biggest city. With regards to the economy, the European recession contributes to lower growth forecasts for Asia, including China. Weaker global growth, particularly in key export markets in Asia and Australia, applied downward pressure on the demand for New Zealand’s exports. Asia and Australia remained the key export markets. 2011 was about limiting damage and 2012 was about making the economy run. The economy grew slower than predicted, but the banks

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appeared to be in good shape. Welfare program reform focused on saving money. The government wanted to prevent its younger population from entering the welfare program.

The government, in an effort to reduce the deficit, announced major budget cuts in education. New Zealanders, especially students, referred to this budget as the “black budget”. The budget included austerity policies. Freezing the parental income threshold caused fewer students to qualify for the weekly allowance. The policy also limited the time students can obtain the allowance, which forced students to borrow loans to continue studying longer than 200 weeks. There were also further cuts in research funding and increasing the loan repayment rate to 12%.

Rebuilding Christchurch was a major issue impacting the government. Over 5000 property owners in the red zone signed a sale and purchase agreement with the Crown. The cost to rebuild Christchurch was estimated at NZD20 to 30 billion.

SOUTHEST ASIA

The Philippines

Dean Juan Miguel M. Luz, Asian Institute of Management (AIM)

The Philippines has six year political cycles with no presidential re-election. One of the consequences of a failed martial law experience is a constitutional provision: Short enough for a bad president long enough for a good president. The country has a weak political party system. No experience of party affiliations carried over

presidential administrations. Political figures appear more influential than institutions and political families remain dynastic in character. With regards to the economic growth rate, it remains low-to-medium. The service sector and large remittances together push the Philippine economy. About 11 million Filipinos living abroad create the largest Diaspora network in the world. The main problem is the large informal

economy. The banking sector remains small and conservative. Public-private partnerships (BOTs) appear to be the main drivers of economic growth. Openness to foreign investment remains middling. Corruption seems to be declining as a result of an anti-corruption measure taken by previous governments, but the improvements rest on personal leadership rather than the institutionalization of such measures. The Philippine economy expanded 5.9 % in the second quarter of 2012. Compared with neighboring economies, the growth rate was among the highest in the region (Malaysia 5.4 %, Thailand 4.2%, Vietnam 4.7% and Singapore 2 %, but lower than Indonesia 6.4% and China 7.6%).

Indonesia

Dean Louie Divinagracia, Universitas Pelita Harapan

Indonesia’s rank in “Doing Business” was 126th in 2011 and 129th in 2012, with labor, infrastructure, and general regulatory reforms remaining critical to increased investment. The medium-term development plan (2009-2014) focuses on promoting the quality of human resources, the development of science and technology, and strengthening economic competitiveness. At least 13.5% of population lives below poverty line & 50% of households are clustered at $22/month. The per capita GNP is $2200 (year 2000) and $3720 (year 2009), with expected economic growth as of April 2012 at 6.1% (year 2012), and 6.4% (year 2013). The projected budget deficit is 0.4% of GDP (year 2011). Domestic consumption is about 2/3 of GDP. Fitch ratings gave the country its investment-grade status in December 2011 (since the 1997 Asian financial crisis).

In May 2011, the government launched the “Master Plan for the Acceleration and Expansion of Indonesian Economic Growth (MP3EI) - the national development roadmap (2011-2025) worth $437 billion. Six economic growth corridors were identified: Java, Sumatra, Papua-Maluku, Kalimantan, Sulawesi and Bali-Nusa Tenggara. By March 2012, 84 infrastructure projects were announced: 15 projects by GOI, 20 by

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SOEs, 38 by private sector and 11 by PPPs. About $200 billion worth of domestic and foreign investments per year will be needed. The business sector committed $150 billion.

The international orientation of higher education is concerned with quality and development. According to the updated higher education plan, the country seeks to build research universities and increase the number of PhD holders. A professional track (i.e. through technical and vocational education/polytech universities) will likewise be pursued to address other human development needs.

Malaysia

Dean Izani Ibrahim, National University of Malaysia (UKM)

The Malaysian economy grew strongly (5.1%) in 2011, mainly due to growing domestic demand. Inflation started to decline while unemployment held steady at low levels. Real wages, though, seem to have made only modest gains. The biggest boom came from the private sector. In 2010, the government started its subsidy reform by removing subsidies on energy and sugar. Malaysia aims to cut its fiscal deficit to 2.8% of GDP by 2015, and is on its way to narrowing the budget gap every year through 2020. The fiscal deficit is expected to fall to 4.7% in 2012 from 5.4% in 2011, though still remaining the widest in Asia after India. Domestic politics continue to play a major role in the formulation of economic policies. This is potentially capable of delaying reform initiatives.

Despite the slow progress in implementing austerity measures, the Malaysian government was able to reduce the overall crime rate by 15% by lowering street crime by 3%. The government also allocated major funds for improving second level educational institutions. There have been major

improvements in the supply of clean water and infrastructure. In fact, the Malaysian government sees the supply of clean water in all of Malaysia as a

priority. Building blocks against corruption is an ongoing project. The Whistleblower Protection Act became law in December 2010. The act established 18 new courts, which specifically focuses on corruption cases. Among all the measures taken against corruption, perhaps the “Name-and-Shame” Act constituted the most interesting and aggressive provision. The act established a program where identities of 328 corruption offenders, along with their pictures, were publicly revealed online.

The Malaysian government’s transformative national plan targets achieving $15,000 GNI per capita by 2020. The plan proposes establishing 12 National Key Economic Areas (NKEAs): Education, Tourism, Wholesale & Retail, Electrical & Electronics, Healthcare, Palm Oil & Rubber, Infrastructure, Agriculture, Business Services, Greater KL/Klang Valley, Financial Services, and Oil, Gas & Energy. For each of these areas, the plan established labs (NKEA Labs) to identify projects to achieve the targeted GNI per capita goal.

Thailand

Somchanok Passakonjaras, Chulalongkorn University

The main drivers that would shape Thailand’s economy in 2012 are classified externally and internally. Externally, the ASEAN Economic Community or AEC, which will be achieved in 2015, will make ASEAN a single market and production base. With an aggregate population of 580 million, AEC will be the largest regional integration. With its plan to integrate China, Japan, South Korea and India in the near future, AEC+ will be much bigger. In addition, there will be a free flow of skilled labor (currently there are 7 included professions, i.e., engineering, nursing, architecture, surveying, medicine, dentistry, and accountancy). Additionally, externally, as Myanmar has opened up, it will be an attractive market and a new investment site for Thai business. Internally, a minimum wage increase to 300 baht per day since early this year has dramatically impacted SMEs. Closing out,

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downsizing and hiring illegal immigrants, among others, are solutions for survival.

In the aggregate, how these drivers will shape the Thai economy is impacted by the ongoing EU crisis and Thailand’s domestic politics. The implications impact Thai business and international business education. Thailand needs to leverage capabilities in order to reap the benefits of AEC. Thailand should focus more on industries that have competitiveness (e.g., food, tourism, and health care) and can be in position to be a regional (and later global) halal food center, tourism hub of Asia and regional health care hub. Although an aging population is not a problem in the region as of yet, Thailand can commence doing business on retired nursing care for Europeans and the Japanese. It’s becoming easier for SMEs to be a part of the global and regional production network. There will be more production concentration (based on specialization/comparative advantage) in each country.

International business courses will focus more on the region and downplay the global. Coupled with a global economic recession, the necessity of putting more emphasis on regional is even clearer. A topic on emerging markets has to be included. International business courses, offered for regular programs in Thai, should instead be taught in English.

Singapore

Kirpal Singh, Singapore Management University

Singapore is a high-income economy with a gross national income per capita nearing US $60K. The country is among the world’s most competitive economies, with its strong manufacturing and services sector. Singapore’s economy, though, unexpectedly contracted as Europe’s debt crisis escalated and demand for its goods from Europe diminished. In early

July 2012, the government forecast for GDP growth stands between 1-3%, which is a significant deceleration from 2011. As an export-oriented economy, any negative change in the external environment, especially in the price of oil, may have a

cascading effect on Singapore’s economy. Singapore generally enjoys a fairly low unemployment rate around 2-2.5%, and the government does not expect to see any significant changes in the next year.

The 2012 QS Global 200 Business Schools Report lists four business schools in Singapore as internationally recognized business education institutions: INSEAD-Singapore, NUS Business School, Nanyang Business School and Lee Kong Chian School of Business. In the Asia-Pacific region these four business schools maintain a strong reputation with employer index scores of 86.3 to 96.5.

EAST ASIA

South Korea

Sean Watts, Yonsei University

Singapore and Hong Kong are the world's leaders in innovation. Korea is 3rd followed by Japan. India is in "frugal innovation". China and India lead in attracting FDI in R&D. According to The Global Innovation Index, Switzerland tops the rankings, followed by Sweden, Singapore, Hong Kong, Finland, Denmark, the US, Canada, the Netherlands and the UK. Korea is 16th, Japan 20th, China 29th, Malaysia 31st, and Thailand 48th. The Innovation Efficiency Index compares innovation output with input (bang from innovation bucks). Korea is 8th, Japan 25th, Hong Kong 27th and Singapore 36th.

For innovation outputs, Korea and China are ahead of Japan in terms of scientific output, and far ahead in creative output. The world's most innovative companies: Toyota 5th & Samsung 9th, with another 10 in the US (Apple, Google, 3M, GE, Microsoft, P&G, IBM, and Intel). Samsung makes computer chips, Galaxy smart phones and much more, including flash, DRAM, applications and processors for $46 of the $178 total component price or $560 average sale price of the iPhone. Samsung has 16.2% of the smart phone global market share, up from 5.6% in 2010. More than 81% of Koreans are said to be plugged into the internet daily,

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managing social media and personal websites, such as facebook, twitter, and cyworld.

Seoul alone produces $531 Billion, half of the total GDP wealth of Canada. In 2010, Korea hosted the G20 economic forum and world leaders. Yonsei is key in Korea’s development achievements. Yonsei is also active with the Asia Pacific Association of Business Schools.

China

Lili Cao, Zhongnan University of Economics and Law

By the end of the "11th Five-Year Plan" period, China's industry has stepped into the middle stage of industrialization. Its industrial capacity, technical ability, labor cost, infrastructure conditions and the supply-and-demand relationship in the market have undergone significant changes. Different than other countries at the same stage of industrialization, China has a large surplus of capital supply and foreign exchange reserves, with its infrastructure having been improved markedly because of large-scale governmental investments. Although China now has grown to become the second largest economy in the world, this fact has not compensated for its structural problems, which exist in demand, industry, technology innovation and export aspects. The transformation of its economic development pattern, the strategic adjustment of its economic structure and its sustainable and scientific development is the theme of "12th Five-Year Plan".

China now is entering a new period of industrial reform. There are no “sunset industries” in China, and even the most traditional manufacturing sectors have more room for development. Based on the profits accumulated from low-end “made-in-China” products, many traditional enterprises are transforming and upgrading

through product series extensions, new materials research, process reengineering and the application of advanced information technology. From the central to local governments, manufacturing development is still

considered the top priority. It has also been emphasized that to form a more balanced industrial structure and to accelerate the development of service industries related manufacturing, China is making efforts to develop strategic emerging industries such as IT, energy saving, new energy, biotechnology, high-end equipment manufacturing, new materials and new energy vehicles.

Chinese enterprises are also experiencing a strategic shift in upgrading to the high value-added industries in different ways. Some manufacturing enterprises have moved their factories from eastern coastal areas to central and western regions to maintain low cost advantages. Some companies, such as Sany and Zoomlion, implemented integration policies along with a focus on supply chain to keep overall competition advantages. Some take the chance of cross-industry investments to achieve a comprehensive transformation in diversified business, while others such as Huawei and BYD have stepped into the advanced manufacturing sector in the high-tech and emerging industries.

China is seeking new sources of international competitiveness. Investments in infrastructure, especially nationwide transportation networks, greatly strengthened modern industrial systems and reduced logistics costs. The integration of information technology and industrialization would speed up the productivity and transformation from traditional labor-intensive industries to modern labor-intensive industries. Further improvement in government administrative efficiency would lower enterprises’ regulatory transaction costs.

China is now exploring a national self-innovation strategy. Through years of “market-for-technology” experience, China realized that it maintained a lack of knowledge and human resources, and that a country without innovation abilities cannot achieve competitive advantages. China responded by establishing Beijing Zhongguancun, Wuhan East Lake, Shanghai Zhangjiang and Hefei-Wuhu-Bengbu, four national self-innovation demonstration zones. In these zones, stock option incentive plans and favorable tax and financial policies have been carried out to stimulate technology research, digestion and diffusion.

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Taiwan

Dean Shu-Hsing Li, National Taiwan University

Taiwan’s economic growth for 2012 is projected at 2.08%, down from 3.03% predicted in May, with a per

capita gross domestic product of US$20,000 according to the Directorate-General of Budget, Accounting and Statistics. This decline in GDP is mainly due to continuing global economic uncertainty and the country's weak export outlook. Sources cite the European sovereign debt crisis, weak U.S. economic and employment figures, Japan’s

stagnant recovery constrained by a strong yen and rising oil prices as the main reasons for the downward revision.

The slowdown of its economy is not reflected in education. One of the leading institutions in Taiwan, The Business School of National Taiwan University, is expanding its international business program in order to elevate global recognition and increase international student intake. National Taiwan University Business programs rank in the top 50 in the 2010 EMBA Rankings. The university continues to enhance its programs by improving English-taught courses/programs, offering Chinese language courses, along with region specific courses/programs. National Taiwan University’s Global MBA program is a fitting example towards this direction. Originally initiated as a certificate program in 2004, GMBA successfully transformed into a degree program in 2006. It is a 2-year English taught program, which currently has a ratio of 30/30 local and international students. The graduation requirement is completing a thesis in addition to 45 credits. Most importantly, recognizing China’s increasing weight in international trade, National Taiwan University offers an international Chinese Language Program and a training center in Mandarin.

AMERICAS

Canada

Bernie Wolf, York University

Canada performed relatively well during and after the financial crisis in 2009. In 2011-12, GDP grew by 2.2% to $1.39 trillion. Canadian GDP amounts to 1.76% of 2011 Global GDP. Unemployment fell by 0.6% to 7.4% in 2011. Inflation grew by 1.0% to 2.8% in the same year. Direct Foreign Investment inflow increased to $596.8 billion from $561.1 billion and the DFI outflow grew to $659.8 from $616.1 billion. The current account balance in trade amounts to $-52.6 billion, a decrease from $-49.4 billion in 2010. Data on exports indicate an increase from $393 billion (2010) to $450.6 billion in 2011. Major export partners of Canada remain the same: the U.S. with 74.9% and the UK with 4.1% (2010). Numbers on imports show an increase from $401.7 billion (2010) to $459.6 billion (2011). Major import partners include the U.S. (50.4%), China (11%) and Mexico (5.5%).

The 2012 Stock Market Returns data shows Canada positioned at 1.16%, which is below the average YTD percentage change of 7.11% for all countries shown in the data. This is primarly due to declining commodity prices and the rapid decline of RIM.

The Canadian dollar experienced a decrease in value in 2011 because of concern over the European debt crisis. Growth projections for 2012 and 2013 are stagnant (for the initial year 2.1% and for the former 2.0%.) The rates, however, are still enough to generate modest job creation. Unemployment should decline slightly to 7.1% in 2013 from a current rate of 7.2% (US to edge down from 8% to 7.7%)—though high youth unemployment persists, 13% for ages 20 -24.

The speech that Mark Carney, Governor of the Bank of Canada, gave in June of 2012 signaled Canada’s growth continues with “an underlying momentum consistent with the gradual absorption of the remaining small degree of economic slack.” The Governor also commented on the global financial crisis and stressed that any reform of the

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financial system must take into account its global nature. “It is not enough to have our own house in order unless we seal ourselves off from the world - and if we were to do that we will end up much poorer.”

The four main components of the global financial reform agenda are:

1. Building resilient institutions,

2. Ending too-big-to-fail,

3. Creating continuously open markets

4. Moving from shadow banking to market-based finance.

USA

Yim Yu Wong, San Francisco State University

America’s GNP stands at $15.64 trillion as of March 2012. Unemployment was 8.1% in the same period. The pessimistic outlook for the U.S. economy foresees a slowdown in manufacturing (52.8 according to ISM index). Modest growth is still expected, but expectations for revenue, profit and headcount growth demonstrate decline. National debt stands at $15.88 trillion. The trade deficit is $51.8 billion (March 2012). The optimistic view stresses that the economy is getting better since the global financial crisis.

Applications for U.S. unemployment dropped to the lowest level in four years, reinforcing signs the employment rate is picking up. Higher gasoline prices may be limiting gains in the index. The technology sector is expected to add the most jobs over the next 12 months. The U.S. Congress Senate Budget Committee meeting on June 28, 2012 revealed 27 consecutive months of private-sector job growth, 11 consecutive quarters of real GDP growth and an unemployment rate down from its 2009 peak. Manufacturing has expanded for 34 consecutive months, with US auto manufacturers returning to profitability and state revenues showing signs of improvements.

Colombia

Maria Alejandra Gonzalez-Perez, Universidad EAFIT

The global financial crisis caused a drop in remittances, a decline in the volume of international trade, a decline in exports, limited access to international loans, increased protectionism, exchange rate volatility and a reduction of FDI in Latin America. From a policy perspective, these consequences had negative impacts on poverty reduction programs. They created tensions in the political system and increased state dependency among the poor. However, the crisis demonstrated to the governments of the region that it remains crucial to lower public debt. Well-capitalized and adequately regulated banking sectors are becoming the norm in most countries in the region. Private pension funds are playing an increasingly relevant role as financial investors. Increased international reserves reinforce the region’s preparedness to face the adverse effects of global market shocks. Central bank reserves in the region total almost U.S. $800 billion. Latin America continues to build democratic institutions, with its respective political systems becoming increasingly stable and providing a more predictable policy environment.

With regard to Colombia, the Colombian Peso ranks high at the list of Latin American currency performance charts over the past six months. Experts estimate that the COP will close the year at 1,800 per USD. The Colombian Central bank has US$34 billion in international reserves and the bank has extended the daily USD purchase program until November. The economic outlook remains optimistic. After 5.9% GDP growth in 2011, the Colombian economy grew by 4.7% in the first quarter of 2012 and economists foresee a 5.0% growth in 2013. Unemployment rate remains moderate at 10.9%.

Colombia remains a key military ally and economic partner of the U.S. President Juan Manuel Santos has seemingly constrained narco-terrorist activity in rural areas and his administration favors a peaceful political solution to ongoing civil conflict.

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RESEARCH PAPERS

Day two began with a productive discussion on the research conducted on innovations in teaching International Business. Moderated by Manuel Serapio and Shirley Daniel, participants of this panel included Maria-Alejandra Gonzalez-Perez (EFAIT University), Jin-Gil Jeong (Howard University), Antony Drew (University of New Castle) and Randall Dunham (University of Wisconsin, Madison).

Students’ Perspectives Toward International Employment Opportunities and their Implications for Teaching International Business and International Exchange Programs

Prof. Jin-Gil Jeong from Howard University presented his research on teaching international business and international exchange programs from the IB students’ perspective. His study investigated the attitudes of college students in Korea toward employment

opportunities overseas with the survey method. The results indicate that Korean students have a strong interest in overseas employment, and the U.S. ranks first in terms of preferred host country. The degree of psychological readiness for overseas employment remains high. Study results have implications for PACIBER schools. Survey results indicate that students mostly need help with the job search process. Therefore, enhancing global employment opportunities by increasing the exchange programs between PACIBER member schools is of vital importance. Putting more emphasis on teaching global entrepreneurship and cross-cultural collaboration also seems to be areas that necessiate improvement.

Virtual teams: challenges and opportunities for international business teaching and learning

Maria Alejandra Gonzalez-Perez from Universidad EAFIT in Colombia presented her work on the challenges and opportunities for international business teaching and learning. Her paper aimed to provide descriptive results of a survey-based study in Colombian universities on the challenges and opportunities of using virtual teams in international business teaching and learning. The paper documented the experiences of teachers and students who have been recently introduced to collaborative international projects using virtual teams as part of the IB curriculum. The results indicated that although there is a common trend regarding challenges such as time zone differences, technology limitations and establishing relationships of trust, the vast majority of students participated in the survey stressed that the use of virtual teams within an academic environment facilitated cultural understanding and enhanced the prospects for achieving project goals.

Comparative Approaches to Teaching International Business

Tony Drew of the University of Newcastle in Australia presented his findings on different approaches to teaching IB from an international/multi-cultural perspective. He introduced new trends in IB teaching as: 1) face to face delivery to the local and increasing international students in the school’s home country, 2) face to face delivery to local and international students in one or more host countries, 3) online delivery to local and international students from the school’s home country 4) blended learning to local and international students in one or more host countries, plus online delivery.

Furthermore, he stressed that the nature of student cohorts is changing. IB educators see increasing numbers of 30+ year old students, a concomitant increase in levels of student work and worldly experience, increasing numbers of part-time students, increasing number of students whose native language is not that of the business school,

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increasing cultural diversity in student cohorts and increasing reliance on technology for course delivery and management. Drew’s paper included a case study that aims to explain how to deliver the same material in different contexts and to diverse cohorts of students in achieving the same learning outcomes. The case study demonstrated that non-native speakers/students need greater time to digest teaching and learning materials. The study suggested that IB educators develop techniques to draw students from Confucian and Buddhist cultures into classroom discussions.

Instructional Technology - Online Courses and e-Texts

Randall Dunham, University of Wisconsin-Madison, provided a stimulating presentation on how to integrate e-text technologies in IB teaching. His presentation included how to constitute an e-text book using iBooks. He also explained how the University of Wisconsin Business School makes use of e-texts. In a pilot study, he explored the prospects of e-text usage covereing 5 courses with 722 students. (Sociology 120: Marriage and Family, Journalism 565: Effects-Mass Communication, Engineering, Mechanics & Astronautics 202: Dynamics, Philosophy 211: Elementary Logic, Environmental Science 101 (Soil Science)). Early results indicated that students read 85,531 pages, actively used markups (30,059), and printed 7,293 pages. The lower cost of an e-text and having access to the text beyond the semester are only two major attractive points of using e-texts in IB education. The interactive/global nature and content of the discipline almost calls for the integration of such technologies in IB pedagogy.

Schulich IMBA

Bernie Wolf, York University, presented the Schulich IMBA program, which is a specialized 20-month program, including a three month work term. The program’s unique features include a true immersion: focused study in international business; proficiency in a second language; specialized knowledge of two global trading regions (including North America); specialized knowledge of and work experience in a major trading country; and completion of an integrative international strategic consulting project for an existing company or organization. Additionally, the program offers the option of studying abroad at one of Schulich’s top-ranked international management school partners.

Innovations in Teaching International Business - Has South Korea Taken its Confucianism Too Far?

Sean Watts, Yonsei University, discussed Confucianism in relation to teaching international business. Referencing the research of Hofstede and Bond, he relates the rapid economic rise of East Asian nations post the Second World War with the common cultural values of these countries and the teachings of Confucius, that have been widely accepted as the way of life. He posits whether these values that supported this rapid growth in the past will be able to sustain growth in the future and analyzes the impact of these values on the development of South Korea and how it is shaping the future. In relation to education, promoting independent thought can be hindered by Confucianism’s collectivist tendencies.

MEMBER SCHOOL UPDATES

University of New South Wales, Australia

• Setting up a Master of International Business/Dual degree

• School of Organization and Management and School of Strategy and Entrepreneurship merged into a new School of Management (better integration of IB area)

• IB set as a priority/focus on cross-cultural management (new hire: Prof. Dave Thomas)

• Participating in the X-Culture project (multi-country international collaboration exercise)

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University of Newcastle, Australia

• Introduced a suite of revised Business program offerings: MBA, MB, MIB, Master of Marketing, Master of HRM, and Master of Applied Finance.

• Introduced two new preliminary courses developed to introduce students to qualitative and quantitative business research methods, techniques in management decision making and embed business and management related academic literacy skills and competencies.

• Increasing number of international students at both Newcastle and Singapore campuses and to postgraduate coursework in Newcastle, Sydney, Singapore, Hong Kong and online through GraduateSchool.com.

University of Auckland, New Zealand

• Exchange agreements with Chinese University of Hong Kong, Korea University, National Taiwan University, University of British Columbia; University of Calgary, University of Hawai’i, Manoa, University of New South Wales, University of Sydney, Waseda University.

• Completed submissions for the 2012 PBRF round. PBRF rewards excellent research and tertiary education organizations are funded on a basis of their performance. Results will be released in 2013.

• New postgraduate taught masters program. Students will have the option of one of the three specialisations: IB, general business or accounting. Expected student composition will be 25% domestic and 75% international.

University of Colorado at Denver

• Moving to a new building in downtown. New IP Morgan Center with brand new commodities.

• Interdisciplinary centre for discipline risk management and global energy management

• IB will be a cluster area but will work with a number of above centers on global outreach.

• Cosponsored by CU Denver’s Institute for International Business (IIB) and Center for International Business Education and Research (CIBER) and the University of Glasgow’s Business School, the workshop on international entrepreneurship featured paper presentations by professors Jay Barney, Sharon Alvarez, Jeff Covin, Jean Francois Hennart, Marian Jones, Lucrezia Casulli, Saras Sarasvathy, and Shaker Zahra.

University of Wisconsin Milwaukee

• Major budget cuts under Wisconsin’s new governor.

• Signed an agreement at the end of last year with CERNET, an educational organization in China. Under the agreement UWM will bring up to 1,000 high-performing students from China to Milwaukee. Strong revenue stream expected from this agreement.

• Exchange agreements with North China Electric Power University in Beijing, Feng Chia University in Taiwan, and Justis Liebig University in Germany.

University of Wisconsin Madison

• New dean for the Wisconsin School of Business: François Ortalo-Magné

• Because of the many organizational, budgetary,\ and leadership changes, future collaborative efforts are uncertain at this time.

• FDIB in Southeast Asia with University of Hawai’i

University of Sydney, Australia

• Business school has a separate IB department.

• Established an Emerging Market Internalization Research Group

• Re-launch of the Maters of IB in 2012.

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• Decline in the number of international students

• Vice Chancellor announced a plan to reduce staff numbers by 7%.

Asian Management Institute (AIM), The Philippines

• 250 students in graduate school

• Large executive education programs offered throughout Southeast Asia

• As of August 2012, new dean starts his 3 year term

• Started offering MM degree

• Executive MBA program focuses on Indonesia, Malaysia and Dubai

• Looking into participating actively in collaborative programs with the PACIBER schools.

EAFIT, Colombia

• Eager to collaborate more with PACIBER schools. The university accommodates one or two visiting scholars every year.

UKM, Malaysia

Lots of KPI’s and need for fund raising.

• In the process of developing executive MBA programs, open to inputs, ideas, and collaboration with PACIBER schools on this issue.

• The university is inviting visiting scholars –for more information contact the dean.

National Taiwan University, Taiwan

• “Rome was not built in a day” would accurately describe the reputation of the College of Management, National Taiwan University today.

• The college passed the AACSB accreditation in 2010 and has established partnerships with 74 of the world’s prestigious business universities.

• In the process of modernizing facility. Just established a new conference facility.

• The school is on its way to building the third Management Building and raising funds of US$50 million for this building.

• Established the National Taiwan University Management Internship Program with participation of 36 companies providing 249 internship opportunities for students in 2011.

• Offering GMBA and GBBA in English

Columbia University

• Moving to a new facility that will be completed in 4-5 years.

• New research initiatives. Faculty members at the business school and in the department of economics are examining the relationship between economic crises and asset pricing.

• Helping smaller colleges in NYC to teach with Columbia University case studies.

Chulalongkorn University, Thailand

• New MS in financial engineering. This program is offered in English.

• BBA (international program) offers 3 majors: IB, Accounting, and Financial Analysis and Investment

• Doctoral degree programs (Management, Finance, Marketing) will adjust their semester system to an international semester system (Fall semester starting in August and Spring semester staring in January)

Griffith University, Australia

• Currently 400 undergrads in IB majors

• Centralization of internship programs

• Supply-chain management became a separate business school

• Decrease in foreign student population

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Howard University

• New executive MBA program and entrepreneurship program

• HBCU faculty conference in entrepreneurship sponsored by Google.

• The university is a member of the presidential commission on innovation

• Exchange program with York University

• Participating in the Fulbright scholarship program

Michigan State University

• New direction from dean Stefanie Lenway: partnering more with the Michigan business community. Having students write business plans based on faculty inventions, which could get funded by local venture capitalists.

• Updated programs: Food security and supply-chain management

• More focus on online programs and applying classroom models to real world problems.

• 100 students to study abroad annually in all 7 continents

• Research continues on IB stray. Looking for more partners for exchange and study abroad programs.

San Diego State University

• The Wells Fargo Financial Markets Laboratory: opening Fall 2012. On campus trading room designed to educate on the fundamentals of capital markets and financial literacy in a real time setting

• The Zahn Center for Innovation: opened in 2011. On-campus incubator for entrepreneur students who want to turn their ideas into companies. Collaborating with the school of engineering.

• The Professional Sales and Sales Management Specialization will train students on how to use analytical sales techniques (such as CRM

software) to prepare them for a successful career in sales (3M sponsored).

• SDSU Venture Challenge: March 14-16, 2013 San Diego

San Francisco State University

• In April 2012, SFSU appointed Linda S. Oubre Dean of the College of Business. Also on August1, 2012, Dr. Leslie Wong of SFSU will start her term as the new president of SFSU.

• SFSU MBA program was ranked 13th in the U.S. and 16th in the world by the Aspen Institute’s Beyond Grey Pinstripes survey in September 2011.

York University, Canada

• Schulich’s MBA (IMBA) is in the process of a major curricular review and transformation.

• New stream in the Masters of Finance program: wealth management.

• New Masters of Accounting and Master of Science in Business Analytics programs.

• The school is well underway in developing a specialization in Global Mining Management.

• In the process of completing plans for a new international case competition with the assistance of the Asia Pacific Foundation of Canada, built around the theme of business and trade in Asian markets.

Yonsei University, Korea

• The university accepts applicants within Korea at the top 1.2 to 1.5% on the College Scholastic Ability Test and the top 20% of non-Korean EIC applicants qualify for very generous scholarships.

• Yonsei acquired EQUIS (European Quality Improvement System) accreditation from the European Foundation for Management Development (EFMD) in 2012.

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• Exchange agreements with over 600 partnering universities.

• Certified by the AACSB.

PACIBER BUSINESS MEETING

PACIBER Collaborative Projects

The following projects were discussed as platforms for PACIBER collaboration.

• Christina Stringer (University of Auckland) provided information on the ongoing PACIBER International Business Case Book Initiative. The PACIBER Casebook initiative received 34 submissions. The editors are still looking over the rest of the submissions. To date, 4 cases have been accepted for publication. PACIBER Casebook is an ongoing project therefore new case studies are welcomed. For submission e-mail: pacibercasebook@gmail.com

• Manuel Serapio (University of Colorado, Denver) gave specifics of the Center for International Entrepreneurship and informed members about the Center’s visiting scholar program.

• Amir Mahmood (University of New Castle) provided an update regarding ongoing research collaboration between his institution and Chulalongkorn and De La Salle Universities.

• Charmaine Courtis (York University) and Larry Crump (Griffith University) shared minutes from the PACIBER Diploma and Exchange Coordinators Meeting, concluding the second day of the meeting.

Collaborative Research

Dr. Amir Mahmood, University of Newcastle

The research agreement encourages and promotes cooperation as follows:

• Academic staff exchanges between the universities for mutually agreed upon

periods of time for the purpose of faculty development;

• Mutual exchange of delegations, study tours and specialists;

• Cooperation in joint research with publications in scholarly journals

• Student exchange

• Co-sponsorship of conferences, seminars, symposia and workshops.

Under these provisions, the University of Newcastle has been collaborating on faculty research, with universities from Malaysia (Universiti Kebangsaan Malaysia (UKM), Graduate School of Business; University of Malaya, Multimedia University), from Thailand (Chulalongkorn University and Thammasat University), Philippines (De La Salle University), and Pakistan (Lahore University of Management Sciences.)

Outcomes of these collaborations can be summarized as follows:

Collaborative Research Projects

• Multimedia University, Malaysia – Survey on Internationalization of Higher Education.

• University of Malaya, Malaysia – Research Project on Multinational Enterprises in Malaysia; Malaysian SMEs in New Economy

• Chulalongkorn University, Thailand – Survey on Foreign Enterprises in Thailand

Co-sponsored Research Workshops

University of Kebangsaan, Graduate School of Business, Malaysia – Business Education and Research Workshop; Research Colloquium

PACIBER Diploma

Universidad EAFIT and Griffith University entered into a cooperative agreement to establish closer ties through a Memorandum of Understanding (MOU) in March 2011 and established an Exchange Agreement on November 8, 2011. This exchange agreement specifically seeks to

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enhance cooperation between the two International Business Departments, although the agreement includes all business students. The agreement provides exchange for students and staff and a study abroad component. The Griffith-EAFIT program will operate based on PACIBER Diploma guidelines.

NEW MEMBER PRESENTATIONS

University of Pelita Harapan, Indonesia

Established in 1994 by the Pelita Harapan Foundation. The university has 14 faculties with 26 undergraduate study programs in Jakarta and 5 faculties with 6 study programs in Surabaya. With regards to graduate programs, UPH offers 8 masters degrees in Marketing, Financial Management, HR Management, MS in civil engineering, and masters of communication and 1 doctorate degree in business law.

The International Business program operates under the Department of Management and courses are offered in English. UPH also offers certificate programs in marketing, financial planning, and in HR management. Currently, there are 4050 students, of which about 10% occur on the Surabaya campus. There are 240 students in the Masters of Management program. All programs in the Business School are nationally accredited, with both campuses having the same Accreditation level.

UHP collaborates with a number of PACIBER schools including De La Salle, Ateneo de Manila, and AIM of the Philippines. UHP actively participated in the preparation of USAID-PACIBER grant proposal.

UHP is looking forward to enhance the partnership with PACIBER members in organizing field studies, faculty development, networking with privately owned/family businesses, and industry associations, and co-hosting regional conferences in Indonesia and in SE Asia.

Zhongnan University, China

Founded in 1948, Zhongnan University is located in Wuhan, China. The Business School is organized into 4 departments: Business Administration, Trade and Marketing Management, Agriculture and Forestry Management, Management Science and Tourism Management.

In its teaching and research, the school bridges economics and management. The school is now authorized to award doctoral degrees to Level-One discipline – Business & Administration, and owns 2 postdoctoral research stations of Business Management and Applied Economics. The School now offers 7 doctoral programs (Business Management, Industrial Economics, International Trade, Agricultural Economy Management, Tourism Management, Technological Economy and Management, and Marketing), 12 post-graduate programs (Business Administration, Industrial Economics, International Economics and Trade, Agriculture and Forestry Economy and Management, Tourism Management, Technological Economy and Management, Land Resource Management, Marketing, Human Resource Management, E-Commerce Forestry Economy and Management and Logistic Management), 10 undergraduate programs (Business Administration, Marketing, Human Resource Management, International Economics and Trade, Trade and Economics, Logistic Management, E-Commerce, Tourism Management, Management Science, Agriculture and Forestry Economy and Management) and 4 professional master programs (international Business, Tourism Management, Asset Evaluation, Agriculture Promotion).The current recruitment of the school includes about 140 doctoral students, more than 600 post-graduate students and more than 3100 under-graduate students.

Singapore Management University, Singapore

Established in 2000, SMU’s mission is to generate leading edge research with a global impact and to produce broad-based, creative and entrepreneurial leaders for its knowledge-based economy. Home to more than 7,200 students, SMU comprises six schools: School of Accountancy, Lee Kong Chian School of Business, School of Economics, School of Information Systems, School of Law and School of Social Sciences, offering a wide range

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of bachelor’s, master’s and PhD degree programs in business and other disciplines.

Postgraduate studies in the business school include the Masters of Professional Accounting (MPA), Executive Master of Business Administration (EMBA), MBA, Masters of Science in Innovation (MI), Master of Science in Quantitative Finance (MQF), Master of Science in Wealth Management (MWM), MS in Communication management (Mscomm), MS in Applied Finance (MAF), MS in Financial Economics (MSFE), MS in Applied Economics (MAE), Master of IT in Business-Financial Services (MITBFS), and Master of IT in Business-Service Sector Analytics (MITB-SSA).

The Wee Kim Wee Centre, directed by Professor Kirpal Singh, is SMU’s first Centre for research. The WKWC is tasked to promote deeper understanding on the impact of cultural diversity on the business environment. The centre employs visiting scholars, organizes weekly luncheons with the participation of CEOs and ambassadors from around the world and helps organize regional conferences.

PACIBER Business Action Plan

New Membership: Following new member presentations, PACIBER member schools decided that SMU’s full membership depends on its attendance at PACIBER 2013. UPH’s full membership, again, will be confirmed based on the process of developing partnerships with PACIBER members (student/faculty exchanges, research, conferences, projects, etc.) and attending the 2013 PACIBER meeting. Similarly, Zhongnan University is also accepted conditionally, with full membership based on the process of developing partnerships with PACIBER members (student/faculty exchanges, research, conferences, projects, etc.). Members requested a greater commitment during the upcoming PACIBER meetings (i.e. - letter of commitment from the Dean) as well as attendance at PACIBER 2013.

Elections: Oceania, Southeast Asia, and At Large were up for nomination. The following were elected.

• Oceania 2013-2015, University of Auckland, Christina Stringer

• SE Asia 2013-2015, Chulalongkorn University, Dean Pasu Decharin

• At Large #2 2013-2015, University of Wisconsin, Randall Dunham.

Recommendations:

Need more participation in surveys (student exchanges).

Executive committee conference calls – Quarterly. Subcommittees.

Institutional commitment.

Promotional material for PACIBER Diploma.

Formalize PACIBER member nomination process.

- Change membership period from 2 consecutive years to 3 consecutive years.

- More than one institution for nomination.

Recruit new members from China and India.

2013 Meeting: Plan around AIB in Istanbul, Turkey, July 3-6 (preconference and workshops July 1-3). Hosted by Chulalongkorn in Thailand (Bangkok or Phuket). June 27 (Th) through June 30 (Sun), 2013 is the tentative target date.

Action Plan: For the PACIBER 25th anniversary, deliver the published PACIBER Casebook, JTIB publications, highlight PACIBER’s 25 year history (key people, key milestones), and invite key PACIBER people.

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